Syria rice trade report

Rice consumption is increasing moderately, in line with population growth and imports are forecast to exceed 300,000 tons in 2010. Egypt, Syria’s major supplier, severely restricted exports during 2008 and early 2009 seasons. This affected the Syrian market and caused higher retail rice prices. The export restrictions, although significantly reduced, are still in place. Consumption In Syria, rice consumption is increasing due to population growth and the presence of over one million Iraqi refugees in Syria. Each Syrian is entitled to 0.75 kilogram of rice per month at 10 SP (21 U.S. cents) per kilogram under the Government of Syria (GOS) ration card system. There was a delay in distribution of the rationed rice during 2009 due to the delay in imports after Egypt restricted rice exports in 2008 and early 2009. This created additional demand for rice in the free market and prices doubled. Traders had to look for other rice suppliers to supply the local market demand. The increased prices did not go down when the global prices did. This is very different from the wheat, barley and corn situations where prices started to drop shortly after international prices started to go down. Rice is selling at higher prices than in neighboring markets because the Syrian traders imported the rice at the height of the market. Import Trade Matrix Units 1000 MT Imports for:2009 U.S. 6 Egypt 150 Thailand 100 Australia 5 Pakistan 5 Spain 5 Italy 5 Vietnam 10 CY 2009 was not a normal year for the importers or the consumers who still prefer to import and consume Egyptian medium grain rice due to the price factor. As with consumption, imports are forecast to grow in general, taking into consideration the increase in population and the continued presence of over one million Iraqi refugees. Further improvements in the political and security situation in Iraq could start to reduce the refugee population. Egypt, Thailand, Australia, Italy, Pakistan, Spain and the United States are the traditional suppliers. India and Vietnam have recently emerged as small suppliers. Marketing: Syrian consumers generally prefer medium grain rice from the United States, Australia, Italy and Egypt to long grain rice from Thailand and short grain rice from Vietnam. In addition, the Iraqi refugees are more accustomed to long grain. However, the limited purchasing power of the average Syrian influences the decision to seek out cheaper sources of rice.

Brazil Rice annual report

Production: Rio Grande do Sul, in the South Region, is the major rice producing state in the country, generally accounting for half of Brazil‟s entire crop. However, as is the case with corn, some rice is produced in every state in Brazil. Brazil produces mainly long grain rice under irrigation and also dryland conditions. Nearly fifty percent of rice produced in Brazil is irrigated rice, with 90 percent of all irrigated rice production in Rio Grande do Sul. The South continues to shift from dryland to irrigated production. Yields in irrigated areas are generally high at more than 6 kilograms per hectare. Conversely, production in the Center-West and Northeast is usually dryland cultivated with much lower yields. Center-West rice area has not grown as many had predicted. With the massive expansion of soybean and corn cropland in the region, it was thought that rice would also expand as it is often used as a precursor crop and occasionally in rotation with soybeans. However, such expansion has not occurred on the scale many had predicted and in fact, the area under cultivation has fallen from 900,000 hectares in 2003/04 to 356,000 hectares in 2009/10. In 2009/10 the Center-West fell from the second largest planted region to the fourth behind the South, Northeast and North. The Northeast is comprised of many small producers that rely on hand labor and use few inputs, and therefore yields are only one third of those on the Southern lands. Planting runs from September through November and harvest runs from the following February through April. The local marketing year runs from March to February. Page 17 Post estimates that Brazil will produce a smaller rice crop this year at 7.85 million tons (milled basis) or 11.5 million tons of rough production. Imports are estimated at 1 mmt or double last year‟s 500,000 tons. In Rio Grande do Sul, excess rain caused replanting outside the recommended period. Throughout the state, there were an estimated 1.084 million hectares planted but only an estimated 1.031 million hectares will be harvested. There are also continuing concerns that moisture and high temperatures may increase the possibility of disease outbreaks that could damage the quality of the crop. Outlook 2010/11: Production Post forecasts rice area planted in 2010/11 at 2.8 million hectares, the same level as 2009/10. Rice production is forecast at 12.2 mmt (rough basis) or 8.3 mmt (milled basis); an increase of 6 percent from the current 2009/10 estimate reflecting better yields based on moralized weather patterns. Producers remain concerned about red rice and in particular, to its growing resistance to herbicides. Red rice is the main invasive plant in the South. The presence of red rice has resulted in lower prices to producers. Red rice infestations began to be controlled in 2004, however, now there are reports that in some areas red rice is almost 100 percent resistant to herbicides. Imports With 2009/10 national production down due to adverse weather, Post is increasing its import estimate to 1 mmt, the highest level since 2003/04. Brazil will source the vast majority of these rice imports within the Mercosul block, principally Argentina and Uruguay. These countries maintain competitive advantage in the Brazilian market due to lower land and production costs, lower transportation costs, shorter delivery times and zero-duty access. However, there are reports of Brazil needing to source outside of Mercosul. Although there was speculation that there would be opportunities for U.S. exports in January, the probability of this occurring has been reduced because prices have fell more than 10 percent in February.. The 2010 tariffs on non-Mercosul rice is 10 percent for HS1006.10 (excluding for seed), 10 percent for HS1006.20, 12 percent for HS1006.30.11 and HS1006.30.21, and 10 percent for HS1006.30.19 and HS1006.30.29, and 10 percent for HS1006.40. With 2010/11 production is expected to rebound, imports are forecast to fall to 700,000 mts. Page 20 Exports Over the past few years, Brazil has positioned itself as a rice exporter. From March 2008-February 2009, it shipped a record volume with a value of over US$330 million. Brazil now faces the challenge of maintaining its position given this year‟s production shortfall. The Brazilian rice industry has been upgrading it facilities at the Port of Rio Grande and investing in new processing structure with an eye toward the foreign market. Rio Grande do Sul, which accounts for one-half of domestic production, has an export target of 10 percent of its crop. In 2008, Brazil expanded export sales of value-added products finding niche markets for white and parboiled rice in Nigeria, Senegal, South Africa and Benin. Despite these efforts, most analysts suggest that it will be difficult to keep up this export pace when faced with a production shortfall. They say that internal demand will be satisfied first. One option to maintain a presence in foreign markets is for the Government of Brazil (GOB) to take action to preserve outside markets by having the Food Supply Company (CONAB) auction off part of its 1 mmt exclusively for export sales. Post estimates2009/10 exports at 300,000 mt, less than one-half of the 650,000 mt exported in 2008/09. In 2010/11, exports are expected to increase to 500,000 tons. Stocks: Storage is particularly tight at rice harvest since Rio Grande do Sul, the principal producing state, is also a major soybean producer with the two crops harvested simultaneously. Policy: A normative instruction which establishes new classifications, identity requirements, quality and labeling standards of rice went into effect March 3, 2010. This instruction applies to imported as well as domestic rice. Producers supported updating the normative instruction to bring it more in line with international standards as they seek to increase exports. Marketing: The Government of Brazil (GOB) announced R$600 (US$333) million in guarantees for the commercialization of rice. This funding will preserve rice market prices affected by excessive rain and a potential reduction in international prices. Another R$600 (US$333) million could still be made available if producer prices fall below R$23 (US$12.78) per sack.

Drought destroys P8.4b worth of crops

THE damage wrought by El Niño to crops amounted to P8.4 billion, Agriculture Secretary Bernie Fondevilla said Friday. Verified reports showed standing corn crops sustained most of the damage, he told reporters at the sidelines of the Agriculture Guarantee Fund Pool awarding rites at the Bureau of Soils and Water Management. The government could not yet say if the damage would go beyond P11 billion as reported earlier. “We'll see. Should the episode worsen, we can estimate the extent of the damage and determine if there will be a need to import additional rice,” he said. The government is monitoring 14 provinces greatly affected by the drought, including Cagayan, Isabela, Nueva Vizcaya and Quirino in Northern Luzon, Bulacan and Nueva Ecija in Central Luzon, Occidental Mindoro, Oriental Mindoro, Marinduque and Romblon in the Mimoropa area or Region IV-B, Masbate in Bicol, and Antique, Guimaras and Negros Occidental in Western Visayas. Still, the department has no numbers yet for the total size of farmlands affected by the drought as well as the volume of crops that were destroyed. Over 200,000 metric tons (MT) of paddy rice was destroyed, Fondevilla estimated. The department’s Central Action Center earlier placed the damage to crops at P11.2 billion, with damaged paddy rice nearing 300,000 MT. Despite the center’s numbers for rice crops, Fondevilla said the department is sticking to its projection that paddy rice output in the first half would total 7.2 million metric tons. Paddy rice production for the second quarter will reach 3.463 million MT or 0.8 percent higher than the 3.435 MMT produced in April to June 2009. In crop survey for January, the Bureau of Agricultural Statistics said that paddy rice output in the second quarter would grow with the 1.11-percent expansion of harvested areas. It projected a harvest in 868,000 hectares of irrigated and rain-fed farms in the country. “With the demand (for palay) expected at 3.03 MMT in the second quarter, the 3.463 MMT projection is more than enough to cover our national requirement for the period,” Agriculture Secretary Salvador Salacup said. This year the Philippines will import up to 2.4 MMT of milled rice, mostly from Vietnam, to fill a possible gap in production, cover the crops damaged by typhoons late last year and the current crops felled by the drought.

Thailand Govt plans major rice roadshow

Deputy Prime Minister Trairong Suwankhiri will head a roadshow to 10 countries from March to May with the aim of selling 2 million tonnes of rice via government-to-government contracts. Department of Agriculture Extension (DAE) is expecting to achieve a bumper production of boro rice in the district during the current season as more 6,858 hectares of land than the target were brought under cultivation. A scheme had been taken to bring 171,592 hectares of land under boThe government hopes to boost exports in order to shore up domestic rice prices as well as reduce its stockpile burden. Commerce Minister Porntiva Nakasai is preparing the plan to promote Thai rice abroad. The roadshow will visit Indonesia, Malaysia, Bangladesh, Libya, Senegal, Iran, the United Arab Emirates, India, Mauritius and Singapore. A source at the ministry said the plan is to sell all types of rice: 5 per cent, 15 per cent and 25 per cent rice, sticky rice, broken rice, Pathum rice, parboiled rice and jasmine rice. Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, said Thailand would lose more market share to Vietnam over the next year. He cited the dong's double depreciation this year, which has made Vietnamese rice cheaper on the global market. For instance, Vietnamese 5 per cent rice is currently quoted at US$360 (Bt11,628) per tonne, against the Thai price of $500. Due to uncompetitive pricing, Thailand's rice exports have continued to drop during the past few months. ro cultivation this season in the district with an output target of 646,860 metric tons of rice. But, the farmers have cultivated boro paddy on 178,450 hectares of land in the district, 6,858 hectares more than the previous target. The DAE is expecting to achieve new production target of 675,985 metric tons of rice. Of the total land, hybrid varieties of paddy were cultivated on 43,550 hectares of land with an output target of 208,605 metric tons while local varieties on 134,900 hectares with target of 467380 metric tons. Steps have been taken to ensure smooth supply of fertilizer, insecticide, diesel and uninterrupted electricity to achieve the target. The supply and reserve of fertilizer are sufficient this year, which is much higher than the last year, sources said. Deputy Commissioner M Abdul Jalil said all necessary measures have been taken to make the current boro season a success. Sources said the BCIC has supplied 58,032 mts of urea, 5,833.5 mts of TSP, 5,094.5 mts of MOP, 3,122.5 mts of DAP and 3,255.5 mts of SSP fertilizer in the district through 981 dealers. Farmers and DAE officials are expecting a bumper production of boro this season if weather remains favourable and pests do not invade the crops.

Pakistan Agriculture Research Council introduces aerobic rice production technology

Pakistan Agriculture Research Council (PARC) has introduced a new technology called Aerobic Rice Production Technology, aiming at conserve water and enhance paddy yield. Chairman PARC Dr.Zafar Altaf told APP that under the technology the paddy crops do not need standing water necessary for the crop but cultivated like wheat and maize crops. He claimed that by using the technology the farmers in the country can enhance their production from existing 26 Maund to 73 Maund which is more than double of the yield. “Through this method we can conserve 30 percent of water in the rice cultivating areas”, he remarked. Initially, he said that PARC has selected one district in Sind (Sangar and Sakrand) and one in Punjab (Bahawalpur, Rahimyar Khan and Multan). He said that in Pakistan, rice is, traditionally, grown as manual transplanting of 30-days old rice seedlings in the well flooded and puddled fields. Rice nursery is raised separately on fine-prepared and manured soil. He added that the nursery seedlings at the age of 30-35 days are, then, uprooted manually and shifted to the flooded and puddle field. Puddling, he said land preparation in flooding destroys soil structure and after paddy crop harvest, the soil condition is not conducive for fine land preparation and good stand establishment of following Rabi crops. He added that farmers keep standing of water continuously up to the maturity of rice crop. Moreover, manual and random transplanting of rice seedlings does ensure optimum plant population. About 50,000-60,000 plants are found in the manual transplanted crop against the recommended plant population of 80,000 to 100,000 per acre. In this respect, he said that the conventional method of rice cultivation is labour and water-intensive and involves high cost of energy, with the result of low paddy yield. Hence, he observed the present rice cultivation system is not very productive, resource-efficient and sustainable, and poses serious threats to the sustainability of rice-based cropping system. Alternatively, he said aerobic rice (a special rice that is grown like wheat or maize crops) addresses to such issues and saves water, labour, time and improves stand establishment of the following crops.

Philippines see rice production exceeding demand

UNMILLED rice production would reach 3.46 million tons in the second quarter, more than the projected demand of 3.3 million tons and should keep the grain’s prices stable, the Agriculture Department said Thursday. It said it also expected stable prices for chicken and fish, and that sugar prices should “soften” even with the drought brought by El Niño. Government attempts to induce rain have mostly failed, but the Soils Bureau said Thursday it was optimistic its cloud-seeding would help ease El Niño’s effects on crops. “We are duty-bound to implement this program as long as there are requests for cloud-seeding,” said Lilian Naga, head of the agency’s water division. About 221 cloud-seeding sorties had been conducted nationwide as of March 11, but most of them had failed, Naga said. “In fact, in our assessment about 20 percent or even less had been successful,” she said. “We’ve been the target of many criticisms as to why we continue to implement this program despite its apparent futility. We put our lives on the line because we have a directive to implement the program.” An agency team usually does a sortie once it decides there are enough clouds to be seeded. It carries 11 25-kilogram bags of salt and seeds for an hour and a half per sortie, and from 10 a.m. to 3 p.m. A sortie costs P22,400 per hour, including the Cessna plane’s rental, but “most of the time the salt seeded on the clouds melts due to extreme heat,” Naga said.

Australia to export rice gain

Total area planted to rice in 2011/12 is forecast to increase sharply to 35,000 hectares. Despite this increase, this area remains well below the ten-year-average of 64,000 hectares and well below the record of 177,000 hectares planted in 2000/01. Prolonged and severe drought, which began in 2002/03, has seen planted area fall to just 2,000 hectares in 2007/08. Planting of the 2011/12 rice crop is expected to commence in November. Post has assumed average weather conditions in the lead up to planting and this, combined with good rainfall since late December, should see production rise. Production Rice production for 2011/12 is forecast at 299 TMT, up sharply on the revised estimate for the previous year. If achieved, this crop will be the biggest crop harvested since 339 TMT was harvested in 2004/05. Post advises that this forecast is based on average rainfall. Above average rainfall would likely see 2011/12 production forecast revised upwards. Industry sources place rice production potential in the 250-400 TMT range. Post has revised production for 2010/11 upwards slightly to 185 TMT in line with industry expectations. Recent rainfall and modest improvements in irrigation water supplies is expected to result in yield improvement. Trade Since the drought began in 2002/03, rice has been imported in steadily increasing quantities while exports of rice have steadily fallen. However, a return to more normal production conditions is expected to see domestic supplies of rice increase. Post expects that, going forward, imports of rice to fall steadily while exports begin to build. Post forecasts 2011/12 rice imports to decrease to 200 TMT while exports of rice increase to 65 TMT. Post expects this trend to continue as domestic rice production returns to levels more reflective of the long term average. According to Global Trade Atlas data, the overwhelming majority of Australia’s imported rice is sourced from Thailand. However, the United States has recently become another significant supplier and, although minor by comparison, now stands as Australia’s second largest supplier.

Vietnam rice price update

Rice price offers dropped again last week due to limited export demand and the harvest of the spring crop, which is the main crop in the Mekong River Delta. Paddy prices were down VND100 per kilogram compared to the last two weeks, due to the abundant supply of paddy from the spring crop harvest.

Thailand rice update

Despite a strengthening Thai baht to 32.4 baht/$, export prices declined further by $10-15/MT due to quiet foreign demand. Foreign buyers stayed away from Thai rice as Vietnamese rice supplies are available at $120/MT cheaper than Thai rice. In addition, some exporters are facing difficulties as buyers are trying to renegotiate lower prices for previous contracts. Other exporters are cautious in lowering their quotations as concerns loom over a strengthening Thai baht to 32.0 baht/$, which would result in unanticipated higher domestic costs.

Bangladesh to import wheat on back of rice crunch

The government is importing 4.5 lakh tonnes of wheat to compensate for the deficit in procurement of Aman rice and lack of rice in the international market. The import is aimed at meeting the country's internal food demand and bolstering food security programmes. Food ministry officials said the wheat is being imported from Russia and Turkey. "In spite of having sufficient food reserves, the government is going for import because of some problems in production situation," Food and disaster management minister Abdur Razzak told bdnews24.com. However, the decision to import wheat has been taken due to lack of enough rice in the international market, he said. "We're getting proposals for importing rice from various countries including India", the minister said, adding "but the problem is no other country exports boiled rice except India". . "However, India has stopped rice exports for lack of productions. Countries who want to export to Bangladesh, including Thailand and Myanmar, sell un-boiled rice which we cannot bring in large amounts due to lack of popularity." Under these circumstances, the government has taken initiative to import wheat to make up for the food deficit, the minister said. According to the food ministry, the procurement target of Aman rice was 3 lakh tonnes. But so far only 22,000 tonnes have been procured. Ministry officials said that the government has around 7.5 lakh tonnes of food reserve, which cannot be released until the production situation in the Boro season becomes clear. The food minister said that they are prepared to start Test Relief programme at upazila levels. But it is being deferred because of the delay in wheat import. The ministry is intent on releasing this year's first wheat allocations under the TR programme by Mar 26. The first consignment of 3 lakh tonnes of wheat are to reach the country by the end of March and the second shipment of 1.5 lakh tonnes is to arrive by Apr 12. The government expects to release the imported wheat by Apr 26. Disaster management bureau director general Zahirul Huq told bdnews24.com that no wheat allocations have been given so far, but it is expected to begin with the TR programme and might be given to other projects later